In the first half year of 2004 Eurohypo’s profit before taxes increased to € 301 million. The interest and provision excess increased 7.3% to € 706.4 million compared to the same period in 2003. The provision excess could be tripled from € 9.2 million to approximately € 26.4 million.
New business in real estate investments developed positively. With over € 6.2 billion as prospect, this means an increase of 11.3% compared to the previous year. In addition, the bank was able to realize a profit before taxes of € 11.5 million in private banking. However, the government finances, which amounted to € 7.7 billion in the first half year of 2003, were reduced to approximately € 5 billion in the first six months of 2004. This volume decline was mainly due to the business strategy, that ranks yields before pure volume.
Bernd Knobloch, CEO of Eurohypo, expects that the 2003 results can be amply exceeded in the whole fiscal year 2004.